House GOP proposes $5 billion tax credit program to open more charter schools

Yahoo

11-04-2025

House Republicans proposed legislation to open more charter schools under a $5 billion tax credit program in a move that would help President Trump fulfill his campaign pledge to provide 'universal school choice' for all parents and students.
The tax credit would be applied against 75% of the donation provided by charitable givers to top-performing charter school networks or operators, under the 'High-Quality Charter Schools Act' introduced by upstate Rep. Claudia Tenney and co-sponsored by Staten Island-Brooklyn Rep. Nicole Malliotakis, among others.
The tax credit would be capped at 10% of a donor's gross adjusted income.
For example, a donor with $1 million in annual income who donates $133,000 for charter school expansion gets a tax credit of $100,000.
The measure could be folded into a Republican-crafted budget bill.
Both Tenney and Malliotakis sit on the budget-writing House Ways and Means Committee.
'Charter schools have a proven track record of success, working to ensure every student, regardless of zip code, is given the opportunity to succeed,' Tenney said.
This legislation could triple the number of kids enrolled in charter schools nationwide by 6 million, from 6% to 18% of the public school population, added Tenney.
'Parents know what is best for their children, and by providing parents with options, we can improve educational outcomes across our country,' she said.
There are 149,000 students attending 281 charter schools in New York City, accounting for 15% of public school students. The state imposes a cap on the number of charter schools that can open in the city, and that limit has already been reached.
'Charter schools across the country, especially here in New York, are facing demand that far exceeds their capacity,' Malliotakis said.
'I'm proud to join Rep. Tenney in introducing this legislation to ensure students and families have greater access to the school of their choice — while also ensuring taxpayers see a strong return on investment in public education.'
The bill is also backed by Reps. Burgess Owens of Utah and Kevin Kiley of California, both of whom sit on the House education panel and have sway on school-related policy matters.
Eva Moskowitz, founder of the Success Academy Charter Schools network praised the bill — noting it complements the Education Choice for Children Act.
That bill proposes a 100 percent tax credit — a full reimbursement — for 'donations' to nonprofits known as Scholarship Granting Organizations (SGOs), which are then used as vouchers to provide free or reduced tuition at private K-12 schools.
'Together, these policies will demonstrate universal school choice as a national priority,' said Moskowitz, whose Success Academy network oversees 57 schools that enroll 22,000 students, mostly low-income students of color.
Republicans are typically stronger backers of school choice programs than Democrats, who by and large are more wedded to financing traditional public schools than publicly-funded, but privately managed charter schools or subsidizing private or parochial schools.
Trump reportedly supports the bill, which could be the muscle to make the school choice tax credit programs the law of the land, according to sources.
'I want every parent in America to be empowered to send their child to public, private, charter, or faith-based school of their choice. The time for universal school choice has come. As we return education to the states, I will use every power I have to give parents this right,' Trump said, when discussing his education platform last month.